BTMA Calls for Evidence-Based Policies to Protect Domestic Primary Textile Industry, Ensure Fair Competition and Strengthen Export Competitiveness

Following news reports published in several national dailies on 17 October 2026 regarding the withdrawal of bonded warehouse facilities for imports of 10–30 count cotton yarn, the Bangladesh Textile Mills Association (BTMA) wishes to clarify that any policy assessment on this issue should give equal importance to the USD 32 billion investment, production capacity and employment in the primary textile industry, particularly the spinning sector, as well as the availability of raw materials and international competitiveness of the export-oriented apparel industry.

The withdrawal of bonded warehouse facilities does not mean a ban on yarn imports, nor does it introduce any new customs duty. Following the decision of an inter-ministerial committee, the relevant order issued by the National Board of Revenue (NBR) allows imports against bank guarantees equivalent to the applicable duties and taxes, without imposing any new duties or taxes.

As banks generally issue guarantees against non-funded exposure, this arrangement is not expected to create a working capital constraint for importers. The objective is not to disrupt legitimate import and export activities, but to prevent misuse of facilities, safeguard government revenue and ensure a level playing field between domestically produced and imported yarn.